Explain the rationale for using stock prices to infer default risk.

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Value at Risk The New Benchmark for Managing Financial Risk

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Authors: Philippe Jorion

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Question Posted: May 03, 2016 02:24 AM

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Explain the rationale for using stock prices to infer default risk.

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In the Merton model equity can be viewed as a call opti...View the full answer

Value at Risk The New Benchmark for Managing Financial Risk

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